Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company has set the following standards in order to produce one unit of its single product: standard quantity standard price direct materials 2.7 yards

ABC Company has set the following standards in order to produce one unit of its single product: standard quantity standard price direct materials 2.7 yards ?? per yard direct labor 2 hours $14 per hour variable overhead 2 hours ?? per hour During August, ABC Company spent $133,770 to purchase direct materials and had direct labor totaling $189,440. During August, ABC Company used 16,000 yards of direct materials in the production of units. ABC had 2,500 yards of materials in its August 1 direct material inventory and had 1,200 yards yards remaining in its direct materials inventory at August 31. ABC Company reported the following variances for August: Direct material price variance .............. $12,495 unfavorable Direct labor rate variance .................. $24,240 unfavorable Total direct labor variance ................. $6,560 favorable Variable overhead spending variance ......... $1,900 unfavorable Variable overhead efficiency variance ....... $20,900 favorable Calculate the number of units produced by ABC Company in August.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Guidelines For Postmortem Examinations And Auditing

Authors: O.P. Murty, O.P Murty

1st Edition

8123924437, 978-8123924434

More Books

Students also viewed these Accounting questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago